Vote Tertiary Education Summary of Initiatives - Budget 2018

Vote Tertiary Education InitiativesDescription

First Year Fees Free
Operating Funding $increase/($decrease)

  • 2018/19 361.787 million
  • 2019/20 411.420 million
  • 2020/21 452.820 million
  • 2021/22 477.420 million

Four year total $1,703.447 million
Five year total $2,017.049 million*

This initiative funds the Coalition Government’s 100-Day tertiary education commitment to make tertiary education more affordable by making the first year of tertiary education and training fees-free for eligible students from 1 January 2018.

Note: The funding figures at left is the additional funding appropriated into Vote Tertiary Education in December 2017 to implement the fees-free policy from 1 January 2018 – it does not include:

  • the savings to the Crown resulting from reduced Student Loan borrowing by students to pay for fees; or
  • the cost to the Crown of increasing weekly student allowance and student loan living cost payments by $50 from 1 January 2018; or
  • any adjustments to funding or forecasts in out-years based on the experience of fees-free in early 2018. Budget 2018 Estimates documents reflect a reduction in spending in 2017/18 compared to the funding set aside, based on TEC funding allocations.

Education Portfolio Work Programme – Vote Tertiary Education
Operating Funding $increase/($decrease)

  • 2018/19 0.350 million
  • 2019/20 -
  • 2020/21 -
  • 2021/22 -

Four year total $0.350 million

This funding will support a coherent package of work that aims to facilitate discussion and action on new and innovative directions for the education system. The package includes a number of strategies, regional follow-up hui and the formation of advisory groups for a number of work streams.

Note: This funding is the tertiary education component of a broader Education Portfolio Work Programme Budget initiative; in total, $6.75 million is appropriated in Budget 2018 to support the delivery of the Education Portfolio Work Programme.

* The five year total is from 2017/18 to 2021/22. 

For more information about fees-free tertiary education and training, please visit the Tertiary Education Commission’s dedicated fees-free website (external link) .  Information relating to the decisions made with regard to implementing the Government’s two 100-day Making Tertiary Education More Affordable commitments.

Vote Tertiary Education ReprioritisationDescription

Reprioritisation - 2017/18 Underspends and Recoveries in Tertiary Tuition and Training Multi-Category Appropriation
Operating Funding $increase/($decrease)

  • 2017/18 (47.500) million
  • 2018/19 -
  • 2019/20 -
  • 2020/21 -
  • 2021/22 -

Five year total ($47.500) million*

Savings were identified in the current year under the Tertiary Tuition and Training Multi-Category Appropriation (MCA) due to lower demand for programmes for the current financial year.

Reprioritisation - Tertiary Tuition and Training Multi-Category Appropriation
Operating Funding $increase/($decrease)

  • 2018/19 (12.350) million
  • 2019/20 (24.700) million
  • 2020/21 (24.700) million
  • 2021/22 (24.700) million

Four year total ($86.450) million

Savings were identified in the Tertiary Tuition and Training Multi-Category Appropriation due to lower projected demand for programmes across the forecast period.

Reprioritisation - Education New Zealand Contribution to the Kea Network, New Zealand Story and Chair of Malay Studies
Operating Funding $increase/($decrease)

  • 2018/19 (0.175) million
  • 2019/20 (0.275) million
  • 2020/21 (0.275) million
  • 2021/22 (0.275) million

Four year total ($1.000) million

This saving is due to Education New Zealand reducing its contribution to the Kea Network, the New Zealand Story, and the Chair of Malay Studies. The Kea Network connects New Zealanders overseas, and the New Zealand Story promotes New Zealand and its businesses. The Chair of Malay Studies is a fellowship at Victoria University of Wellington (VUW).

Reprioritisation - Prime Minister’s Scholarships for Asia
Operating Funding $increase/($decrease)

  • 2018/19 (0.500) million
  • 2019/20 (0.500) million
  • 2020/21 (0.500) million
  • 2021/22 (0.500) million

Four year total ($2.000) million

This saving is due to forgoing the planned $0.5 million per annum increase in appropriated funding for the Prime Minister’s Scholarships for Asia. The Prime Minister’s Scholarships for both Latin America and Asia will continue to be funded at $3.75 million per annum.

* The five year total is from 2017/18 to 2021/22. 

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